Ford CEO Jim Farley has prompted a sigh of relief from Ford dealers around the world by stating clearly that the manufacturer is sticking by dealers and that they remain integral to the company’s future.
In an insightful interview with the Detroit Free Press, Farley spoke freely about the challenges Ford faces, its rivals and its plans.
Specifically, Farley said that they’re not just hanging onto dealers for the time being but for the long term.
“We’re committing to the dealer model,” Farley said. “We’re not keeping dealers in the mix ‘for the moment.’ We are betting on dealers for the long term. I want to make that really clear. I’m not mincing words. We will have new standards and a new experience. But we learned a lot by watching Tesla.”
When looking at different sales models, Farley compared US retail giant Target with online behemoth Amazon, he added:
“Just like your Target experience is different than your Amazon experience, but Target didn’t go away when Amazon became the dominant retailer, they just had a change. Circuit City went away, and lots of others went away, because they didn’t change. … We believe in a superior customer experience. I don’t want to mince my words. We are betting on the franchise model.”